Economic growth - US standoff a threat

While Finance Minister Michael Noonan gets ready to iron his hair-shirt for next week’s budget, it is some relief to note favourable trends in economic growth.

HSBC’s biannual Global Connections Trade Forecast predicts that sustainable GDP growth over the medium term will be backed by merchandise exports growing by about 6% a year between 2016 and 2030.

However, the IMF yesterday sounded a note of caution, pointing out that the US is driving much of the global recovery and warning of the global repercussions from the standoff between Congress and President Obama over the nation’s $16.7tn (€12.3tn) debt ceiling: “A failure to promptly raise the debt ceiling, leading to a US selective default, could seriously damage the global economy.”